Accept a plan only if you can fulfill your requirements. If you can't make the monthly payment the program requires, don't enroll. Ask if they can get it any lower, contact your creditors yourself, and/or check with another debt management agency. Again, be aware that many debt management plans require you to avoid taking on any additional debt or at least any additional revolving credit debt (i.e. credit cards, store charge accounts). Understand the terms and conditions, and make sure you can follow through on them.
Although there is variation from country to country and even in regions within country, consumer debt is primarily made up of home loans, credit card debt and car loans.[3] Credit counseling includes an array of services to address consumer debt that is not within the debtor's ability to pay, such as education about credi personal finance, budgeting and debt management. In addition to education, a popular credit counseling option is the ‘‘Debt management plan’’ (‘‘DMP’’, known in the United Kingdom as the Individual voluntary arrangement or "IVA"). In order to initiate a DMP, a consumer would authorize the credit counselor to contact each of the consumer’s unsecured creditors and negotiate with each creditor to lower the consumer’s monthly payment amount, to lower the interest rate, and to waive any outstanding late fees. The debt was then ‘‘consolidated’’ into a single payment.[1]
The negative impact is due to the fact that you must close your accounts while in the program, and this can affect your debt-usage ratio. This factor accounts for about 15% of your credit scores. (On the flip side, paying down your debts will improve your overall debt levels. Some consumers see their scores improve during and after one of these programs.)
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington D.C., Wisconsin, Guam, Puerto Rico, American Samoa.
Within five days after a debt collector first contacts you, the collector must send you a written notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you do not owe the money. If you owe the money or part of it, contact the creditor to arrange for payment. If you believe you do not owe the money, contact the creditor in writing and send a copy to the collection agency informing them with a letter not to contact you.
While it seems to make sense to devote every dollar possible to eliminating debt today, in the long run, it’s a costly mistake. Remedy: Contribute at least 5%-10% of your income to retirement savings as soon as you begin working and don’t let eliminating debt cut into that. Time is the most powerful tool in retirement savings. The earlier you start contributing to a 401(k) or other retirement fund, the better off you’ll be at retirement. Find other places in your budget to pay down credit card accounts.
The other approach is more efficient, though: Paying off your highest-interest-rate debts first. Remember that you compiled a list of your debts and their interest rates. Well, the ones with the highest rates are costing you the most, over time. So to minimize your interest expense, you should pay off a debt carrying a 21% interest rate before you tackle a debt with a 12% interest rate.
We typically recommend fixing the rate as much as possible, unless you know that you can pay off your debt during a short time period. If you think it will take you 20 years to pay off your loan, you don’t want to bet on the next 20 years of interest rates. But, if you think you will pay it off in five years, you may want to take the bet. Some providers with variable rates will cap them, which can help temper some of the risk.
Gerri. I screwed up bad. I joined up with a friend who said he can get a company going. I bought $13,000 worth of merchandice and loaned him through time about $15,000 in cash Through cash advanced from my cards. He bailed. I got about $4000 in tools back but I had previous balances(that were controlled) I ended up getting a consolidated loan. Big mistake. Total I owe $13,000($320 month)on a card and $34,000($806 month) to consolidated loan. Now I’m thinking of debt relief($906 per month){total of $34,000which is lower than what I owe on the two debts} My score is 750 est and I don’t want to hurt that. I have house payment of $540 (pay off est $74,000) Car at $450 (pay off approx $15,000)one at $300(pay off approx $13,000) and one at $325 (pay off $23,000{bran new}) and basic stuff. Food, power bill, cable, insurance & cell phones that total up to approx $1300 month. My wife takes care of all that but the mistake of the two debts is all mine. I give her 80% of the pay and I take 20%. I average take home about $2500 to $3000 est every two weeks. I think I need a counselor. What should I do? I’m freaking cause I started the debt relief program($34,000 at $906 for 38 months which is lower than what I owe total on the two debts I’m discussing). but haven’t signed the final paper just yet. I feel I make enough to pay off everything in no time but my wife says we are living paycheck to paycheck. All my wife’s cards will be paid off probably in March. I’m like way confused
This only happens in the first month of the program. After that, your payments are made on time according to the new schedule. As a result, most people see their scores improve because they have low credit scores starting out. That one month of “missed” payments is usually a drop in the bucket compared to all the other payments that might have been late or missed while you were struggling.
It will decimate your credit scores and stay on your credit report for up to 10 years even as you restore your credit history. That’s no small thing, because poor credit history can affect your eligibility for certain jobs, your chances of getting an apartment lease, and how much you pay for car insurance. When your credit is already bad, a bankruptcy may allow you to rebuild your credit much sooner than continuing to try to repay. (Learn more about when bankruptcy is the best option.)

Even better, when you refinance to a lower-rate loan, it lowers your monthly payment. You could continue to pay the higher payments you were making before the refinance to get debt paid off on an accelerated timeline. That $10,000 at 18% over seven years would have monthly payments of around $210 monthly. If you refinanced to a 9% loan with a seven-year repayment period, the required payment would drop to $161. But if you kept paying the $210 you were paying before, you could repay the loan in just five years and pay only $2,418 in interest. You'd make payments for two years less and save yourself $5,252 in interest. 
Second, there's no guarantee that creditors will accept a partial payment. They may refuse any terms that a bankruptcy alternative proposes, leaving you potentially in worse shape than when you began. Finally, late fees and interest accrue on unpaid balances. That's money you'd have to pay, on top of any exorbitant fees the credit agency itself may be charging. 
You see, when you consolidate your debts or work with a debt settlement company, you’ll only treat the symptoms of your money problems and never get to the root of why you have issues in the first place. You don’t need to consolidate your bills—you need to delete them. To do that, you have to change the way you view debt! Even though your choices landed you in a pile of debt, you have the power to work your way out! You just need the right plan. 

You need to start off with a plan so you know just how much debt you have and your ability to pay them off. Also, it will provide you with a black and white scenario of your financial standing. The easiest way to do this is by creating a spreadsheet. If you don’t already have a spreadsheet on your computer you could use the free one that comes with Google Docs. You will want to create four columns – one for the name of your creditor, one for the amount owed, a third for your minimum payment (if applicable) and a fourth for the payment due date. Fill out these columns and you will have a good picture of your debt, which is the first important step in getting it under control.
If you work hard the commission pays off. They are flexible with hours and everyone has great energy which I feel is most important. Full benefits the whole and PTO. I enjoy going to work and thats an amazing feeling. I want to be here as long as possible. You are your book of business here, in addition no micromanaging is a huge plus for me. I am doing really well so far and look to keep crushing it.

Hi everyone, in the UK we have student loans, but these are paid back through your salary when you start earning over £15,000 Gross Salary. Depending on when the loan was taken out, interest rates vary from 1-3% (so quite low). Basically if you’re not working, they cant take the money from you. Is this how it works in the US? Great site by the way it really puts things into perspective.


If your credit card interest rates are so high it feels almost impossible to make headway on your balances, it’s worth calling your card issuer to negotiate. Believe it or not, asking for lower interest rates is actually quite commonplace. And if you have a solid history of paying your bills on time, there’s a good possibility of getting a lower interest rate.
Bankruptcy can't solve your problems if you have substantial student loan debt. Student loans aren't dischargeable in bankruptcy except in extreme cases where you can show severe hardship, such as becoming unable to ever work because of total permanent disability. You also can't get rid of mortgage or car loan debt if you hope to keep the assets; you'll need to become current and eventually repay these debts in full to avoid foreclosure or repossession of the vehicle. But for unsecured debt -- which is debt not guaranteed by your assets that you simply promised to repay -- bankruptcy could provide relief. 
NDR is a great place to turn to if you find yourself deep in financial woes. In my case it occurred via hardships but I can see where I was fiscally irresponsible before the hardships. No judgment from the employees, just good advice and definitely help. They are familiar with and have worked with most financial organizations. Got me a deal with my highest creditor within months of joining. Definitely recommend
I’ve done some research on debt consolidation loans from financial institutions, and have found one for a $10,000 loan @ $197/month for 5 years, fixed rate of 6.99%. This will allow us to consolidate all of our credit card & medical bill debt (normally costing around $1000-1500/month) and allow us the cash to get her car fixed, paying one low monthly cost. Once we get her car fixed we are going to start paying more than the $197/month to pay the loan off quicker.
Who’s it best for? Face-to-face counseling isn’t an option with all debt management companies, but it is with GreenPath. The company has offices in Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Massachusetts, Michigan, Nebraska, New Hampshire, New York, Ohio, Tennessee, Texas, Wisconsin, and Wyoming. If you want a personal touch, the company could be worth a look. It’s also willing to include some secured debt in the debt management program.
When I expressed my concern about not paying my creditors because I had never been late on a payment ever…. I was told not to worried about it. It was going to slightly lower my credit score, you stated that not to worry it will drop off slightly but they will have everything settled within 3 to 4 months and it will go back up after they settle with my creditor and we start making the payments.
While repaying your debt more slowly or at a lower interest rate is better than not paying it at all, a debt management plan can still adversely impact credit scores. Although enrollment in a debt management plan isn't a factor in credit scoring models, it can affect other aspects of your credit that are common factors in many credit scoring models.
Bankruptcy is not the credit catastrophe it once was. Certainly filing bankruptcy does not improve your credit and your credit score will suffer if you file. However, you can rebuild your credit within a few years by charging small amounts on a credit card and paying the bill on time every month. Taking out a personal or auto loan (not payday loans) can help improve your score quickly as well if you pay your bill on time every month. After a few years of doing this, your credit score should be in the 700 range. Post bankruptcy, you can thrive and not merely survive if you are diligent about getting back on the road to financial recovery.
Keeping a budget helps ensure you have enough money to cover your monthly expenses. Plan far enough in advance and you can take early action if it looks like you won't have enough money for your bills this month or next. A budget also helps you plan to spend any extra money you have left after expenses are covered. You can use this extra money to pay off debt faster.
Having said that, the other posters are correct. You can settle debt on your own without the help of a debt settlement company. It does take a lot of time and energy though. That is why some people choose to use a company to do it for them. Due your due diligence and search for reviews of the companies you are interested in and see what others have to say.

Consumer Credit Counseling Service of Greater Dallas, Inc. - Consult with a specialist for free/low cost, and most importantly, confidential advice. They will help you get out of debt, find resources to pay bills, and offer budgeting advice as well which can lead to long term self-sufficiency. They are also a federal government HUD certified housing agency.
I graduated college in 2014, spent a year in law school before realizing it wasn’t for me. Although I have a good paying job now, I didn’t realize how expensive law school really was! My credit card debt for networking and socializing was drastically higher than it was for undergrad (where I paid it off every month). I’m now confronted with this and working to pay it down (3 months in and $2,000 down!). But I’m trying to get even more so that I can start saving for a ring! I didn’t sell any of my textbooks back in college and posted them online last week. So far I’ve earned almost $600 off of them, all of which is going towards my credit card. Additionally, my security deposit from my old apartment is coming back. I don’t have my entire emergency fund built yet (about 1.5 months worth saved), so 1/3 of it is going towards that, the other 2/3 towards my debt. I should be able to pay off another $2,000 in the second half of August/first half of September.
Our experience with Clearpoint Credit Counseling is remarkable as they have helped us understand how to remove that overwhelming and disastrous financial burden from our lives. Our Clearpoint counselor is always welcoming, empathetic, professional and experienced and he has allowed us to live our lives as we had dreamed—free from the nightmare of the intimidating phone calls, the threatening letters and the guilt we felt.
Borrowers also have protections from predatory lenders. Much of these is legal in nature. Many states and the federal government have created laws and rules that payday lenders need to follow. The regulations can cap interest rates, limit the number of times funds can be issued, and offer additional assistance. Read more on the payday laws in your state.
As for your options, it doesn’t sound like your mortgage lender is interested in working with you. (I have no idea what “new laws” they are talking about but the last time I heard, Congress passes laws and the President can either sign or veto them!) I’d recommend you read my series: Underwater On Your Home? Your Six Options and then get some professional advice. In particular, you may want to look into whether bankruptcy or a short sale can help you.
My first week of training was taught by the Chief Sales Officer. That set the tone for how leadership operates. They care and are involved. All my coworkers and leadership are willing to help regardless of what team you are on and who you report to. There is A LOT of recognition for all kinds of successes. There are plenty of spiffs throughout the week/month. The money potential is real. If you are a worker, willing...
Getting out of debt is a long-term commitment; there’s not an overnight solution. The most important step you can take is to develop a realistic plan and set a time-bound goal for paying down your debts. For example, you plan to pay off your $10,000 in credit card debt in three years by paying $280 toward your debt every month. However, make sure your goal is realistic for your budget. If you can’t afford that $280 per month, then you’ve set yourself up for failure and may need to consider extending your timeline to five years for a more affordable payment. Having your goal planned out and written down can go a long way to helping you successfully get out of debt.
Yes and no. If you begin with the biggest debt, you won’t see traction for a long time. You might think you’re not making fast enough progress and then lose steam and quit before you even get close to finishing. It’s important to pay your debts in a way that keeps you motivated until you’ve wiped them out. Getting quick wins in the beginning will light a fire under you to pay off your remaining debts! Listen—knock out that smallest debt first, and you will find the motivation to go the distance. 
For example, a person with three or four credit cards, might owe a combined $20,000 on the cards and be paying something like 24 percent interest. The credit counseling agency representing him could go to a bank and negotiate a loan at half that rate and save quite a bit of money in interest. The loan money would be used to pay off the credit cards, creating a zero balance on each card. Instead of making three or four payments every month, the person would have only one payment.
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